ESG investment
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Environmental, Social and Governance-based investment.
An investment approach which takes explicit account of the environmental, social and corporate governance aspects of all proposed investments.
- ESG performance correlated with better financial returns
- Once controlled for systematic risk, there is a significant positive relationship between ESG performance and financial returns – this has changed considerably over the last few years when it was seen as a trade-off.
- Association of Corporate Treasurers, International Treasury Week, 14 May 2020.
See also
- B Corporation
- Carbon footprint
- Carbon Trust
- Corporate engagement and shareholder action
- Corporate governance
- Corporate social responsibility
- ESG bond
- ESG controversy score
- ESG integration
- ESG ratings
- ESG stock
- Green finance
- I&E
- Impact investing
- Investment
- Negative screening
- Norms-based screening
- Positive screening
- SRI
- Sustainability
- Sustainability themed investing
- Systematic risk
